Dissolution of an association

Verified 13 October 2021 - Directorate of Legal and Administrative Information (Prime Minister), Ministry for Associative Life

Expanded grounds for dissolution to combat Islamist radicalism

Published on 22 February 2021

The rules relating to the dissolution of associations are subject to change.

The information on this page is still valid while we wait for the editing text.

The dissolution of an association may take place by decision of its members (in application of its provisions of the Staff Regulations) or by decision of the courts or by administrative decision. Dissolution results in liquidation and the transfer of the assets of the association. Dissolution must in some cases be made public.

General case

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Voluntary dissolution

The general meeting of the members of the association may vote its dissolution under the conditions laid down in the statutes.

Voluntary dissolution occurs when members no longer wish to continue the activities of an association.

For example, dissolution may occur in the following situations:

  • Lack of motivation of volunteers
  • Completion of the project which was the object of the association
  • Combination dormant whose members wish to formalize the cessation of actions
  • To merge the association with one or more other associations. In this case, the merger of several associations shall be decided by concurrent dissolution proceedings.
  • To split the association into multiple associations. In such cases, the division of an association shall be decided on the conditions laid down in its statutes for its dissolution.

Statutory dissolution

Where the association has been set up for a fixed period, it shall be dissolved automatically at the end of the planned period.

The same is true when the association was created to realize a given object. It is automatically dissolved when this object is realized (example: organization of a demonstration).

If the association continues its activity beyond the period laid down in the statutes or after the achievement of its object, it becomes a de facto association without legal personality. That is to say, without the possibility of concluding acts such as contracts, donations, which bind the association vis-à-vis third parties (persons outside the association).

Judicial dissolution

Where it is based on a cause or for the purpose of an unlawful object contrary to law or morality, an association may be dissolved by the court at the request of the public prosecutor.

Dissolution may also be requested by any person having a direct and personal interest (examples: member, third party, creditor, debtor).

The competent court shall be that of the seat of the association.

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Judicial dissolution may be ordered in the following cases:

  • Failure by a member to fulfill its obligations or serious misunderstanding between members paralyzing the functioning of the association
  • Object of unlawful or unlawful association
  • Illegal use of the associative form (e.g. to try to circumvent tax provisions)
  • Attacks on the national territory and on the republican form of government by the association
  • Criminal conviction of the association

The association receives a subpoena informing him that his dissolution is requested.

The association must then obligatory have a lawyer represent her and defend her in court.

Where the dissolution of the association is sought on grounds of the unlawful nature of its object, the court may have recourse to an urgent procedure called fixed day assignment. It may also order, as a preventive measure before any substantive examination, the closure of the premises and the prohibition of any meeting of the members of the association.

If the association is maintained or reconstituted after the dissolution decision, the founders, directors or administrators may face 3 years in prison and €45,000 of fine. Persons who would allow members of the dissolved association to meet by granting them the use of a premises shall face the same penalties.

Administrative dissolution

A combination is dissolved by decree in the Council of Ministers, in the following cases:

  • Incitement to discrimination, hatred or violence against any person or group of persons on the grounds of their origin or their belonging or non-belonging to a particular ethnic group, nation, race or religion or propagate ideas or theories to justify or encourage such discrimination, hatred or violence
  • Acts, within or from French territory, with a view to provoking acts of terrorism in France or abroad
  • Provocation of armed demonstrations in the street
  • An association which, by its military form and organization, has the character of combat groups or private militias
  • Association for the purpose of harming the integrity of the national territory or violating the republican form of government

Supporters' associations may also be dissolved or suspended from activity for Maximum 12 months by decree, if their members infringements following at a sporting event:

  • Degradation of property
  • Violence against persons
  • Incitement to hatred or discrimination against persons on the basis of their origin, sexual orientation or gender identity, sex or real or perceived membership of a particular ethnic group, nation, race or religion

Other causes of dissolution

Specific grounds for dissolution are provided for certain categories of associations:

  • Withdrawal of approval for municipal hunting associations
  • Automatic dissolution of electoral financing associations 6 months after the deposit of the campaign account of the candidate they support
  • Dissolution of associations having the status of horse racing businesses where they have not organized any horse racing for 3 consecutive years on the racetracks owned or managed by them

The property of the association is transferred in accordance with the statutes.

The rules for the liquidation and transfer of assets are freely laid down in the statutes.

They may provide that the directors shall be responsible for winding up the association.

In the case of voluntary dissolution, if the statutes have not provided for the conditions for the liquidation and transfer of assets, the general meeting may fix them. It may not allocate to the members any share of the assets of the association, other than the resumption of contributions. In the absence of a statutory provision and a decision of the general assembly, any person with an interest in it may apply to the Public Prosecutor for the appointment of a trustee by the court. The curator shall convene the general meeting to decide on the transfer of property.

The liquidators appointed by the statutes, or by the general meeting convened by the Trustee, shall have the following tasks:

  • Recover from debtors the amounts due to the association (the dissolution rendering due the debts that were not yet due)
  • Pay debts (if necessary by selling all or part of the assets of the association)
  • Terminate contracts
  • Dismissal of employees (cessation of the activity of the association is a reason for economic dismissal)
  • If necessary, inform the tax authorities and social agencies

Please note

the merger or division shall entail the dissolution without liquidation of the associations which disappear and the transfer of all their assets to the beneficiary associations.

The statutes, or the general meeting when it is called upon to decide on the transfer of goods, may provide that contributions made by certain members shall be returned to them.

Contributions are goods made available to the association on a permanent basis for an indefinite period of time, without it being a donation.

FYI  

members cannot claim their contributions back.

Once the debts recovered, debts paid and contributions eventually returned, it remains a patrimony (called liquidation bonus) to be transmitted. The latter may be transmitted in accordance with the statutes or, in the absence of a statutory provision, in accordance with the rules laid down at a general meeting. It can thus be transmitted to legal persons following:

  • One or more other associations
  • A regional or local authority, a public body or a public interest group
  • A foundation, an endowment fund, a union, a business, an economic interest group

Please note

for certain categories of associations, the transfer of assets must obligatory be carried out in accordance with specific provisions. This is the case, for example, for an approved communal hunting association.

There is no legal or regulatory requirement for an association to declare its dissolution at the Registry of Associations and to publish it in the JOAFE: titleContent.

However, it is strongly recommended to take these steps to officially terminate the association and inform third parties.

Publication of the dissolution in the OJATE shall be free.

Online

The declaration can be made using the e-dissolution online service.

Dissolution of an association (e-dissolution)

By mail

The declaration may be sent by post to the Registry of Associations of the registered office of the association using the form cerfa n°13972.

A copy of the minutes of the general meeting that decided to dissolve must accompany the form.

Modification of an association (title, subject matter, registered office, management address, dissolution)

Who shall I contact

If the association has registration numbers, Siren, Siret and EPA code, elle duty inform theInsee: titleContent of its dissolution.

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The association received subsidies from the State or local authorities

The dissolution is declared by post at the statistical center of the Insee of Metz. A copy of the official document attesting to the dissolution must be attached to the declaration.

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The association employed staff

The declaration of dissolution shall be made at the company formality center (CFE) of the Urssaf: titleContent. A copy of the official document attesting to the dissolution must be attached to the declaration. The declaration shall be forwarded to INSEE.

Employer association: Siren and Siret number request and status change declaration

The association carried out activities subject to VAT or business tax

The declaration of dissolution shall be made at the company Formalities Center (CFE) of the Commercial Court Registry. A copy of the official document attesting to the dissolution must be attached to the declaration. The declaration shall be forwarded to INSEE.

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Alsace-Moselle

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Voluntary dissolution

The association may be dissolved by resolution of the assembly of members.

For this resolution (decision), a majority of ¾ of the members present is required, unless otherwise provided for in the Staff Regulations.

Voluntary dissolution may be intended to merge the association with one or more other associations. In this case, the merger of several associations shall be decided by concurrent dissolution proceedings.

Conversely, voluntary dissolution may have the purpose of splitting the association into several associations. In such cases, the division of an association shall be decided on the conditions laid down in its statutes for its dissolution.

Statutory dissolution

Where the association has been set up for a fixed period, it shall be dissolved automatically at the end of the planned period.

The same is true when the association was created to realize a given object, it is automatically dissolved when this object is realized (the organization of a demonstration for example).

If the association continues its activity beyond the period laid down in the statutes or after the achievement of its object, it becomes a de facto association without legal personality. That is to say, without the possibility of concluding acts such as contracts, donations, which bind the association vis-à-vis third parties (persons outside the association).

Judicial dissolution

Where an association is based on a cause or for the purpose of an unlawful object contrary to law or morality, it may be dissolved by the court at the request of the Public Prosecutor.

Dissolution may also be requested by any person having a direct and personal interest (member, third party, creditor, debtor, etc.).

The competent court shall be that of the seat of the association.

Judicial dissolution may be ordered in the following cases:

  • Failure by a member to fulfill its obligations or serious misunderstanding between members paralyzing the functioning of the association
  • Illegal object of the association or contrary to laws and morals
  • Illegal use of the associative form (e.g. to try to circumvent tax provisions)
  • Attacks on the national territory and on the republican form of government by the association
  • Criminal conviction of the association

The association receives a subpoena informing him that his dissolution is requested.

The association must obligatory have a lawyer represent her and defend her in court.

Where the dissolution of the association is sought on grounds of the unlawful nature of its object, the court may have recourse to an urgent procedure called fixed day assignment. It may also order, as a preventive measure before any substantive examination, the closure of the premises and the prohibition of any meeting of the members of the association.

If the association is maintained or reconstituted after the dissolution decision, the founders, directors or administrators may face 3 years in prison and €45,000 of fine. Persons who would allow members of the dissolved association to meet by granting them the use of a premises shall face the same penalties.

Administrative dissolution

A combination is dissolved by decree in the Council of Ministers, in the following cases:

  • Incitement to discrimination, hatred or violence against any person or group of persons on the grounds of their origin or their belonging or non-belonging to a particular ethnic group, nation, race or religion or propagate ideas or theories to justify or encourage such discrimination, hatred or violence
  • Acts, within or from French territory, with a view to provoking acts of terrorism in France or abroad
  • Provocation of armed demonstrations in the street
  • An association which, by its military form and organization, has the character of combat groups or private militias
  • Association for the purpose of harming the integrity of the national territory or violating the republican form of government

Supporters' associations may also be dissolved or suspended for up to 12 months by decree, if their members have committed the following offenses during a sporting event:

  • Degradation of property
  • Violence against persons
  • Incitement to hatred or discrimination against persons on the basis of their origin, sexual orientation or gender identity, sex or real or perceived membership of a particular ethnic group, nation, race or religion

Liquidation shall be carried out by the management or by other persons, even outside the association, appointed, as members of the management, by resolution of the assembly of members.

The liquidation begins with the publication by the liquidators of the dissolution of the association in the journal of legal announcements designated in the statutes.

In the absence of a statutory designation, publication shall be made in the newspaper chosen for the publications of the court of the seat of the association.

The publication invites creditors to make themselves known.

If there are several liquidators, decisions must be taken unanimously unless the meeting of the members has decided otherwise.

The liquidators shall carry out the following tasks:

  • Complete open cases
  • Recover from debtors the amounts due to the association
  • Pay debts
  • Sell the remaining assets of the association, once the sums due to the association have been recovered and the debts paid
  • Return the net assets, i.e. the final remaining assets, to the beneficiaries of the transfer of the assets

The assets may not be transmitted to the recipients of the transmission until one year after the publication of the dissolution of the association in a newspaper of legal announcements.

The assets are transferred to the persons designated in the statutes: it may be another association, a natural person, a public body, a foundation, a business, etc.

The statutes may also provide that the beneficiaries of the transfer shall be designated by the assembly of members or by any other body of the association.

In the absence of any statutory provision, the assembly of members may allocate the assets only to a foundation or a public establishment.

In the absence of any designation of beneficiaries, the assets shall be allocated to the State or where the association was for profit, in equal shares, to the members of the association at the time of dissolution.

Where the assets are not transferred to the State, they are necessarily liquidated.

The dissolution of the association and the names of the liquidators must be entered in the register of associations.

The management duty declare that the seat of the association is to be dissolved before the court.

In the case of dissolution by resolution of the assembly of members, a copy of the resolution pronouncing dissolution must be attached to the declaration.

Where dissolution takes place by judicial or administrative decision, its entry in the register of associations shall be made on the advice of the administrative authority concerned.

The dissolved association shall be removed from the register of associations.

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